You are currently viewing Tea firm needs K6m for operations

Tea firm needs K6m for operations

KAWAMBWA Tea Company Limited needs about K6 million for recapitalisation and for payment of salary arrears and terminal benefits.
Company general manager John Bunda said the company has accumulated a debt of about K7.5 million for salary arrears, terminal benefits and payment of contractors and suppliers.
Mr Bunda said due to failure to pay salaries to the employees, the company is currently experiencing a low labour turnout, which has resulted in failure to meet its production target.
Mr Bunda was speaking when a Zambia National Farmers’ Union  team and Finnish Ambassador to Zambia Timo Olkkonen toured the plant last week.
He said there is need to recapitalise Kawambwa Tea Company Limited because it has the potential to create 800 jobs, and increase foreign exchange earnings through exports.
“We are lacking operation capital to address the challenges of payment of salaries as well as creditors and retirees with about K2.49 million owing in salary arrears, K1.41 million owing to retirees, and K156, 000 owing to retirees under court.
“The company also owes about K57, 348 to contractors and suppliers, and with K90, 743 owing to Zesco, these arears were all left by Khumar Holdings of Zimbabwe,” Mr Bunda said
Mr Bunda said recapitalisation is the only solution to ensure the survival of Kawambwa Tea Company
He said other challenges facing the company are poor road network on the estate and the lack of personal protective clothing.
Mr Bunda also said Kawambwa Tea Company Limited is currently unable to maintain the irrigation system and complete pruning of the remaining 153 hectares of tea fields, which has resulted in low production of the commodity.